Apple Reportedly Signs a Deal with Samsung for A-Series Chips Starting in 2015

According to a recent report from The Korea Economic Daily, Apple and Samsung recently officially signed an agreement stating that the two companies will work together on future A-series chips for Apple’s iOS devices. The deal specifically covers A9 chips based on a 14-nanometer process node starting in 2015. The claim comes just a few weeks after the Taiwan Semiconductor Manufacturing Co. (TSMC) confirmed a deal with Apple stating that they will begin producing A-series chips in 2014. The report mentioned the following regarding the situation:

Samsung Electronics had supplied the AP [application processor] to Apple since 2007 but lost the contract to supply 20 nano AP A8 chips to Apple to Taiwan's TSMC last year when it was engaged in patent disputes with Apple. Samsung Electronics developed state-of-the-art 14 nano models ahead of its rival TSMC, regaining the order from Apple.

It’s a bit unclear whether today’s deal will lead to both TSMC and Samsung producing A9 chips for Apple or if Apple is already shifted gears to return to Samsung as its primary supplier as a part of its long-term roadmap. It’s unclear because a previous report about Apple’s agreement with TSMC has indicated that it was a three-year deal covering not only Apple’s future A8 chip but likely its A9 and A9X chips as well. The Wall Street Journal reported that Samsung would likely remain Apple’s primary supplier through next year as TSMC began ramping up its production.

It had been heavily speculated that Apple had been reportedly seeking to reduce its reliance on Samsung as a component supplier as the two companies have become fierce rivals in both the mobile marketplace and in the courtroom. The two companies, however, continued working together in several areas, particularly where Samsung’s competitors in the component market were unable to match its technology, production capacity, and/or pricing. The shift to TSMC for production of the high-profile main chips for Apple’s iOS devices had been viewed as the Cupertino California company breaking one of the most significant remaining tied between the two rival tech giants but it appears that Samsung has been able to bring Apple back into the fold once again. With both TSMC and Samsung being partners, it appears that Apple has positioned itself well enough to take advantage of whichever company takes the lead in developing the latest technologies.

We’ll have to see what comes of the two and if the confusion can be resolved with information that might reveal Apple’s future plans.

Apple is working on making its own chips moving forward. Just like the odds of marriage, this union will end one day as well. Im thinking Samsung must make some damn good chipsets and make them for a competetive price. If not, Apple would use another supplier for reasons that everyone here already knows.

Apple is working on making its own chips moving forward. Just like the odds of marriage, this union will end one day as well. Im thinking Samsung must make some damn good chipsets and make them for a competetive price. If not, Apple would use another supplier for reasons that everyone here already knows.

Agreed. The only reason Apple stays with Samsung is because they are offering the best product for the lowest price. If another company like TSMC started making a better product and offered a lower price Apple would go with them. Apple certainly doesn't rely on Samsung, it's obvious Samsung would do whatever it took (lowering prices) to keep Apple's business. Hopefully Apple will be making their own chips in the future.

Samsung developed 14nm chips before it's competitor. Obviously that's what Apple is after. Apple's hiring of TSMC was nothing more than Apple being a baby and trying to take away a piece of the pie, that Samsung doesn't need. And I can promise you 3 things. Clearly, TSMC couldn't do what Samsung can.

1. Samsung did not give Apple the lowest price.
2. No other company will match Samsungs ability and capacity to give Apple chips at the rate they demand.
3. Samsung doesn't NEED Apple. That's the most ridiculous thing I've ever heard. Let me remind you, who is building the 14nm chips? Lol. Sounds like Apple needs Samsung a lot more than Samsung needs Apple in this case now, doesn't it?